Maybe moving local is the answer for Netflix?
ANOUK DYUSSEMBAYEVA | JULY, 26 / 2022
The road has been bumpy for Netflix within the past few months. The streamer got a lot of attention back when it announced its Q1 results — the subscriber growth chart was flattening and so was the revenue.
The company got a lot of media attention that day, which was one of the worst days for the streaming service: according to Morning Brew, the company's stock dipped almost 70% in 2022 after the subscriber growth decelerated.
Netflix saw a potential solution in implementing ads and making people pay for password sharing. "Stranger Things" has also been performing really well — it's the TV show of the year. However, the top 10 Netflix shows have dropped in view numbers and people are still canceling their subscriptions. There are also more and more players trying to get a piece of the pie, making it harder for Netflix to retain its market position.
According to Bloomberg, the streamer has been discussing things like syndicating its older shows to broadcast networks or putting its movies in theaters, but none of these will likely help Netflix earn additional revenue in the near future.
Before all the skeptics go "aha" and think they were right all along about Netflix, it's worth noting that the Reid Hasting-founded unicorn has been on the stock rollercoaster for quite some time, and can attest to the whole "what doesn't kill you makes you stronger" concept more than anyone else in the startupland.
I think Netflix needs to remind itself of its roots. Netflix has, undoubtedly, been the king of original content, which is a big part of why it has gotten to where it is. With businesses slowly turning towards hyper-local communities — that is the future of content, you've heard it here first — the company should search for more local content. This way, it will appeal to more users demographically and culturally, while also discovering new talent.
The company got a lot of media attention that day, which was one of the worst days for the streaming service: according to Morning Brew, the company's stock dipped almost 70% in 2022 after the subscriber growth decelerated.
Netflix saw a potential solution in implementing ads and making people pay for password sharing. "Stranger Things" has also been performing really well — it's the TV show of the year. However, the top 10 Netflix shows have dropped in view numbers and people are still canceling their subscriptions. There are also more and more players trying to get a piece of the pie, making it harder for Netflix to retain its market position.
According to Bloomberg, the streamer has been discussing things like syndicating its older shows to broadcast networks or putting its movies in theaters, but none of these will likely help Netflix earn additional revenue in the near future.
Before all the skeptics go "aha" and think they were right all along about Netflix, it's worth noting that the Reid Hasting-founded unicorn has been on the stock rollercoaster for quite some time, and can attest to the whole "what doesn't kill you makes you stronger" concept more than anyone else in the startupland.
I think Netflix needs to remind itself of its roots. Netflix has, undoubtedly, been the king of original content, which is a big part of why it has gotten to where it is. With businesses slowly turning towards hyper-local communities — that is the future of content, you've heard it here first — the company should search for more local content. This way, it will appeal to more users demographically and culturally, while also discovering new talent.
